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5.1. Find words in the text which are similar in meaning to these words or phrases:

1) money that is from one country or area (introduction); 2) small piece of paper money (paragraph 1);

3) leaving a place or country (paragraph 1);

4) place where you can change money which is not a bank (paragraph 2);

5) offices of a bank (paragraph 2);

6) money in the form of notes or coins (paragraph 2);

7) extra amount of money charged for a service (para-graph 3);

8) exchange traveller’s cheques for notes and coins (para-graph 4).

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5.2. Translate from English into Russian:

1. В России чаще всего используются наличные день-ги, хотя популярными стали и кредитки.

2. Для обмена валюты на рубли в каждом городе су-ществуют автоматы.

3. Лучше всего деньги обменивать в банках, где бан-ковские проценты небольшие и данная операция безопасна.

4. Не рекомендуется разменивать деньги на улице или у незнакомых людей.

5. За границей невозможно получить рубли в банках или банкоматах.

6. Наиболее предпочтительны за рубежом евро, жела-тельно перед отъездом разменять их в одном из российских банков.

5.3. Discuss in groups. Think about different ways of bank-ing and think about these questions.

1. Do you (your friend) use a bank? Why / Why not? 2. What do you (he, she) use it for?

3. Which methods of banking do you (does she / he) prefer? Why?

4. What are the advantages and disadvantages of each method?

5. Obtain a copy of your company’s balance sheet, or a copy of the balance sheet of a company that you are interested in. What are its main assets and liabilities?

6. You can find this information for companies all over the world at www. carol. co. uk (Company Annual Reports Online).

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UNIT IX. MONEY

1. WHAT IS MONEY?

Text 1

Read the text and answer the questions: 1. What does money include?

2. What are economic characteristics of money?

3. Why have there been arguments on the role of money?

Money is any token or other object that functions as a medi-um of exchange that is socially and legally accepted in payment for goods and services and in settlement of debts. Money also serves as a standard of value for measuring the relative worth of different goods and services and as a store of value. Some authors explicitly require money to be a standard of deferred payment.

Money includes both currency, particularly many circulating currencies with legal tender status, and various forms of financial deposit accounts, such as demand deposits, savings accounts and certificates of deposit. In modern economies, currency is the small-est component of the money supply.

Money is not the same as real value, the latter being the basic element in economics. Money is central to the study of economics and forms its most cogent link to finance. The absence of money causes a market economy to be inefficient because it requires a co-incidence of wants between traders, and an agreement that these needs are of equal value, before a barter exchange can occur. The use of money is thought to encourage trade and the division of la-bour.

Money is generally considered to have the following charac-teristics, which are summed up in a rhyme found in older econom-ics textbooks: ‘Money is a matter of four functions: a medium, a measure, a standard, a store.’ That is, money functions are a medi-um of exchange, a unit of account, and a store of value.

There have been many historical arguments regarding the combination of money's functions. One of these arguments is that the role of money as a medium of exchange is in conflict with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange re-

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quires it to circulate. ‘Financial capital’ is a more general and inclu-sive term for all liquid instruments, whether or not they are a uni-formly recognized tender.

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